Surety Bonds
Bonds are not insurance — a three-party guarantee.
Questions
- Do I need a bond for my cleaning business?
Legally, rarely — no state broadly requires a bond just to clean, though some licensing regimes require bonding or insurance. Practically, yes if you want commercial contracts: clients demand a "janitorial bond" so they're reimbursed if your employee steals from them. Despite the name, that product is fidelity coverage — not a performance-guarantee surety bond.
- Is a surety bond the same as business insurance?
No. Insurance transfers your risk to an insurer that expects to pay losses; a surety bond is a three-party guarantee that you will perform an obligation — and if the surety pays your obligee, it recovers the money from you. "Licensed, bonded and insured" therefore names three different protections, and only the insurance protects your business.